Dublin-based Bank of America Europe’s pre-tax profits amount to 690 million euros

Last year, pre-tax profits at Dublin-based Bank of America Europe (BAE) soared nearly 13-fold to $749m (€690m).

The bank’s accounts show revenue rose 13% from $1.76 billion to $1.99 billion in the 12 months to the end of last December.

Pretax profits of $749 million followed pretax profits of $58 million in 2020.

Last year’s pre-tax profits were boosted by a reversal of impairment for credit losses of $152 million and that follows a $439 million impairment charge under the same heading in 2020.

A note with the accounts says the $152 million impairment release “reflects the effects of the economic recovery from the Covid-19 pandemic.”

Last year, investment income increased 29% from $405 million to $522 million, while net trading income increased 58% from $168 million to $265 million. dollars.

Interest income increased from $696 million to $580 million.

The accounts indicate that the overall increase in income was driven by net income from trade resulting from the growth in global economic activity.

The company provides a range of financial services and is part of Bank of America’s global banking and markets operations in Europe, the Middle East and Africa.

BAE employs a total of 2,349 people, including 1,000 based in Dublin.

Accounts indicate that in April 2021, the company transferred 708 employees to the London branch of Bank of America, which helped reduce the number of employees from 2,858 to 2,349.

The accounts showed that as a result of Brexit, loans worth $656 million had been transferred to the London branch during the year.

On the “Russia/Ukraine conflict”, the accounts indicate that the company’s exposure is not considered significant at this stage.

Personnel costs fell from $544 million to $534 million. Accounts show 10 directors shared an aggregate salary of $5.54 million last year, nearly half of the $11 million paid to directors in 2020. Five board members are non-directors. executives.

Last year, the company’s professional fees rose from $37 million to $49 million.

Last year, the company’s assets grew from $66.2 billion to $67.35 billion. The company’s shareholder funds totaled $12.67 billion, including cumulative profits of $3.5 billion.

Mary I. Bruner